Audit, Automation and Artifice
Automation is a powerful deterrent when it comes to fraud. In this blog I will discuss why finance leaders lose sleep over impending HMRC audits, and what companies can do to protect themselves.
As the workforce evolves, your organisation, like many others, may find itself more susceptible to fraud. While it is considered by some as simply ‘padding out the expense report’, expense fraud is a crime that affects organisations large and small with significant financial implications.
38% of employees admit they regularly claim for things they know they shouldn’t and since 68% of finance leaders aren’t completely confident that employees comply with company T&E policies, when does the justification come into play?
A global study by KPMG found that the biggest driver in committing expense fraud is usually the desire for personal gain. Whether it is supplementing a salary considered to be insufficient, changes in personal circumstance or financial worries. The desire for personal gain can push even those who stick to regulations to tamper.
We often find that finance leaders are unaware of the three most common fraudulent expense types:
- Mileage claims
- Office supplies bought for personal use
- Altering taxi receipts
SAP Concur offers two levels of service to support the kind of inspection your company needs to reduce fraud:
- Receipt Audit provides substantiation and validation of expense report line items to the submitted receipt. It has the ability to ensure that items are appropriately classified, have the correct tax treatment and meet most regulatory guidelines
- Policy Audit provides all the benefits of Receipt Audit and adds an additional level of review against your specific corporate travel and expense policy by reviewing the receipt detail and any additional required documentation.
This is in addition to other tools and functionality that ensure accurate claims such as:
- Mileage capture
- Policy configurations
- Reporting and intelligence
While technology plays an important part in accurate claims, the impact of business culture is key. Make sure your expense policy is clear and to the point. The easier your policy is to understand, the easier it is for your employees to follow. A fully integrated travel and expense management solution ensures all-expense-related activity is captured, allowing you to drive compliance and automatically flag out-of-policy expenses.
If you’d like to talk to us about any of the services or solutions that can improve compliance and remove admin, call 01628 645 100 or visit www.concur.co.uk
